Home – New Forums Starting your journey 2nd Income Sole Trader, payg offsets, partnership – TAX offsets ?

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  • #988369
    P.Beno
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    Hi Everyone !

    I have been selling product online & using satellite stores with moderate success. A great 2nd income but I am getting tax quite abit. My primary income is $95k, with my business making $18k p.a.

    My wife is not working but does the majority of the pack & sending. (at no cost)

    What is the best option to reduce our income tax.

    1. Transfer to a partnership as my wife will not pay tax on her 1/2 of the net profit ?
    – if so is this painful, how can I do this & can I still trade while changes are made?

    2. If I remain a sole trader can I pay my wife say ‘80%’ of the net profit as her wage to offset the tax & run the business essentially a neutral figure after tax deductions ?
    – If so would I just pay payg & super for my wife, is there anything else to pay her ?

    Looking forward to the great advice !!!

    P.Beno

    #1166900
    Anonymous
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    Hi P.Beno,

    Thanks for joining the forum today – it’s great to have you here. :)

    You’ll probably need to consult an accountant for specific advice regarding your circumstances, but in the meantime, I hope one of our resident experts will be able to offer you some general info.

    In the meantime, congratulations on your progress with your business so far,
    Jayne

    #1166901
    Jimmy1
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    Time for your wife to learn how to run her own online business. You have enough to do.

    #1166902
    TehCamel
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    if your wife has no other income, and is performing large amounts of the work, why not just transfer the business as a sole-trader to her completely?
    at 18,000 PA, she’s below the threshold and would pay no tax.

    in terms of employing your wife:
    you’d have to pay her according to the minimum wage, super, you also need workers compensation. you can’t just pay her an arbitrary figure..

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